Original manufacturer and new generic manufacturers

Assignment Help Business Economics

Reference no: EM131159883

When patent protection expires for a pharmaceutical company, it forces changes within the company to adjust its business strategies from a monopolist position to a position that is much more competitive. With that premise, answer the following questions:

• Do the variable costs and marginal costs vary much between these two market positions for a specific drug? Why or why not?

• What happens to the average total cost curve for the same (now generic) drug with regards to the original (prescription) manufacturer and the new generic manufacturers?

Reference no: EM131159883

Questions Cloud

Why is paper money often describes as fiat money : Why is paper money often describes as “fiat money”? Is fiat money any less money than gold coins are? What kind of authority does it take to turn paper into money? Immediately after the recent recession, U.S. dollars were not as warmly welcomed by re..

Demand and supply or entrepreneur : Prices are set by demand and supply or entrepreneur? How entrepreneur affect the price of goods?

What examples can you find of similar types of programs : Explain what you think would be the pros and cons of this type of employment within a correctional setting. What examples can you find of similar types of programs? Where they successful? Why or why not?

Discuss who is responsible for consequence management : Discuss who is responsible for Consequence Management in the context of the management of the effects of Weapons of Mass Destruction.

Original manufacturer and new generic manufacturers : When patent protection expires for a pharmaceutical company, it forces changes within the company to adjust its business strategies from a monopolist position to a position that is much more competitive. What happens to the average total cost curve f..

What is the estimated alpha for fund abc : (a) What is the estimated alpha ( ) for Fund ABC? Given the data in question (a), what is the estimated beta ( ) of Fund ABC? What is the nearest value to the standard errors of the estimated CAPM alpha ( ) of Fund ABC.

Impact on quantity of one price or income change : When all variables are changing simultaneously, is it correct to conclude that the impact on quantity of one price or income change is a true measure of responsiveness or elasticity? Explain your thought on this.

Why is it a good idea to make the components of the drive : Even though energy is conserved for the system, why is it a good idea to make the components of the drive mechanism as light as possible (with the exception of the flywheel)?

Ethical issues relating to marketing and advertising : Research three to five (3-5) ethical issues relating to marketing and advertising, intellectual property, and regulation of product safety and examine whether PharmaCARE violated any of the issues in question

User Account

All Pages